Certified Pre-Owned has been an important segment of the used vehicle market for many years. Consumers tend to gravitate towards the security of the programs. According to Edmunds.com “Certified pre-owned (CPO) cars are popular with buyers who want to minimize the risk of buying a used car. They get added benefits, such as a limited warranty, roadside assistance and loaner vehicles. Understandably, CPO vehicles often carry a higher price than a non-certified model. Many people feel comfortable paying that premium because of the peace of mind a CPO program gives them.”*
The additional value provided to the consumer in a certified unit translates to additional value for lenders, too. Flagship Credit Acceptance offers an additional 5% advance on OEM and select non-OEM certified units**. This additional advance, while always beneficial, is especially useful now, when the value of used vehicles is high, and many Dealers find themselves shopping for the best advance possible in order to put a deal together. According to USA Today The average listing price of used vehicles was $21,558 in July 2020, up $708 from June, 2020***. This is particularly interesting as the summer months are, traditionally, when vehicles experience their greatest rate of depreciation.
Flagship will continue to offer our CPO program, and work to develop new programs to support our Dealer’s growth as we look forward to a strong close to 2020.
*Edmunds.com, Ronald Montoya, August 3, 2018
**Program limitations apply
***USA Today Online, Nathan Bomey, August 5, 2020